1. Field
The present disclosure generally relates to the field of data analytics. More specifically, the present invention relates to the analysis of geographically grouped sets.
2. Related Art
Investments offer the potential for both immediate and long term profits. One common strategy to profit from investments is through income generated by an asset. Many investors also expect to profit from appreciation in the value of the asset. Nevertheless, investments in assets are fraught with risks. For instance, real estate tends to be far more illiquid asset than stocks, bonds, and certificates of deposits (CDs), and may also be more costly to manage on an ongoing basis.
The rate of return on investment (ROI) is a key metric that may be used to evaluate and compare assets under consideration for investment. In general, ROI measures the gains from an investment relative to the concomitant costs (e.g., acquisition, maintenance, management), and may reflect on the profitability or efficiency of the investment. On the one hand, a prudent investor may rely on ROI to select between different assets for investment. For example, an investor may decide to purchase real estate rather than Treasury bonds if the real estate investment provides a higher ROI. Moreover, ROI may be used to choose between specific assets. For example, a condominium may have a higher ROI than a nearby townhome and therefore be a more attractive real estate investment property.
Determining an ROI for an asset is very challenging. A considerable number of factors that vary geographically may need to be determined or estimated and analyzed. However, reliable geographically specific data tend to be unavailable. Compounding this difficulty is that factors that are applicable to one asset in a particular geographic area may be different or altogether irrelevant for another asset in the same geographic area. Therefore, what is needed is a system and method that overcomes these significant problems as described above.